Senate approves Buhari’s $16.2bn, €1.02bn loan request

Adekunle Adesuji,  and Jonas Ezieke, Abuja

Senate on Wednesday approved President Muhammadu Buhari’s loan request for the sum of $16,230,077,718 (USD) billion, €1,020,000,000 billion (Euros), under the 2018-2020 External Borrowing plan without terms and conditions.

The Upper Chamber also approved was a grant component of $125 million (USD), and the request to the Bank of Industries for the issuance of €500 million (Euros) but no more than €750 million Eurobond in the International Capital Market.

 

The chamber’s approval to the loan requests was, however, accompanied by a resolution that the terms and conditions of the loan from the funding agencies, be forwarded to the National Assembly prior to its execution for approval and proper documentation.

The approval followed the consideration of a report by the Committee on Local and Foreign Debt on the proposed 2018-2020 External Borrowing (Rolling) Plan.

Chairman of the Committee, Senator Clifford Ordia (PDP, Edo Central), in his presentation, said President Buhari’s request was in compliance with the provisions of the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007.

According to the lawmaker, the provisions of the statutes enjoins the President to seek and obtain the approval of the National Assembly in respect of the External Borrowing Programme of the Federation and States.

He explained that out of the total amount approved by the National Assembly, the sum of $3,529,300,000 billion would be sourced from the World Bank; $5,078,441,252 billion from China EximBank; $3,902,267,260 billion from Industrial & Commercial Bank of China; $2,893,693,930 billion from China Development Bank; and $698,500,000 billion from the Africa Development Bank (AfDB).

In addition, he stated that €345,000,000 million euros is expected to be sourced from the French Development Agency (AFD); €175,000,000 million euros from the European Investment Bank; $190,255,276 million USD from European ECA/KfW/IPEX/AFC; €500,000,000 euros from the International Capital Market; and $62,120,000 USD from Standard Chartered Bank/SINOCURE.

Senator Ordia explained that the Committee in reaching its resolutions, noted the serious concerns of Nigerians about the level and sustainability of the country’s borrowing in the last decade.

Ordia said Nigeria’s debt figures which continue to increase, reached an all-time high of around 95 percent of retained revenue and 35 percent of its annual expenditure.

He expressed concern that the development constitutes a drain on the nation’s economy and limits resources available for national development.

Underscoring the need for a more proactive approach to revenue enhancement, the lawmaker observed that “there are noticeable improvements in our revenues but the growth is not sufficient or rapid enough to catch up with the pace of  development required for our nation.”

He disclosed that out of the sum of over $22.8 billion approved by the National Assembly under the 2016-2018 External Borrowing Plan, only $2.8 billion – an amount representing ten percent – has been disbursed to Nigeria.

The lawmaker stressed that the projects, which require additional financing, would have great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, healthcare and improve the nation’s security architecture.

He emphasized that tax revenues accruable to Government would increase as a result of the impact of commercial and engineering activities.

Meanwhile, the Inspector General of Police, IGP Usman Alkali Baba on Wednesday appealed to the a joint Committee of the National Assembly to remove the Nigeria Police Force NPF from the envelope budgetary system to enable the agency properly provide its funding requirements in budgetary appropriations so as to enhance its operational planning for optimal service delivery to the citizenry.

 

He made the plea in Abuja when he appeared before the Joint Committees of  the Senate and House of Representatives on Police Afffairs for the 2022 budget defence for the Police Force

 

 

He further pleaded for the approval of  adequate funds for the newly established Special Operations Account of the Force to enable the Nigeria Police effectively and promptly respond to unanticipated national security emergencies and to support on-going special operations across the country

 

The IGP also urged the lawmakers to deploy their legislative instrument to make a strong case for the prompt and full release of funds appropriated to the Nigeria Police in the 2022 budget based on previous experience as funds  duly approved in the passed were not being released as at when due

 

He called for adequate budget provision of  funds under the 2022 budget for the Zonal Police Headquarters that were recently approved by the President which were yet to fully commence operations due to budgetary challenges.

 

According to him,  the new approved zones include  zone 13 headquarters, Ukpo-Dunukofia, Awka; zone 14 headquarters, Katsina; zone 15 headquarters, Maiduguri; zone 16 headquarters, Yenegoa and zone 17 headquarters, Akure respectively.

 

He equally sought for the approval and allocation funds for the operations of the Nigeria Police Special Operational and Tactical Units including the Intelligence Response Team (IRT), Special Forces (SF), and Special Tactical Squads (STS) with a view to enhancing their critical internal security operations.

 

The IGP’ in addition urged the Committee to use their  legislative instrument to approve a self-accounting status for Nigeria Police training institutions and colleges in order to effectively position them for their human capacity development functions in furtherance to the long-term reform agenda of the federal government

 

The Police boss acknowledged the tremendous supports he had received from the Nation’al Assembly since his assumption of office as the 21st indegeous Inspector General of Police which he said had a long way in boosting series of successes recorded in curbing cases of insecurity in the country.

 

He therfore assured that the Nigeria Police Force under his watch would provide needed maximum security for all and sundry throughout the lenght and breadth of the country.

He said: “I thank the Distinguished and Honourable Chairmen and members of the Senate and House Committees on Police Afffairs for the opportunity of this unique interactive session and look forward for facilitation of the process of strengthening the budgetary allocation and implementation framework of the Nigeria Police Force.

 

“I also renew the assurances of my firm determination to continue to synergnise with the two Committees towards the repositioning of the Nigeria Police Force to attain our commonly held vision of a stable internal security order in the year 2022 and beyond”

 

He had presented a budget estimate of N556.79 bn for the joint Committee’s approval for the operational and equipment procurement requistions of the Nigeria Police Force NPF for the year

 

The Police boss however regretted that the Ministry of Finance, Budget Office and Ministry of National Planning had reviewed the budget down to N547.75 bn for the Police saying that it will impede on the operational efficiency of the Police Force.

 

 

Earlier in his remarks, the Chairman of the  joint Committee, Senator Haliru Dauda Jika assured that the the Police chief that the 9th Natiional Assembly would support the Nigeria Police Force in achieving its constitional mandate through adequate budgetary allocation for effective operations.